U.S. consumers continue to demonstrate a growing appetite for natural and organic products, as manufacturers and retailers expand into new and nontraditional areas and deepen their offerings. In fact, total sales for the natural and organic industry increased 56 percent between 2002 and 2006. Natural personal care sales grew by 18.4 percent to $2.78 billion and natural pet product sales increased 15.1 percent to $367 million. Other organic categories showing strong growth were coffee and tea at 23.3 percent and nutrition bars at 22 percent. Food sales in natural product stores were up 11.7 percent, with the hottest sales categories being fresh meat and seafood, as well as beer and wine. Produce remains the largest category with sales of $3.3 billion, up 11.5 percent over 2005.
U.S. consumers continue to demonstrate a growing appetite for natural and organic products, as manufacturers and retailers expand into new and nontraditional areas and deepen their offerings. In fact, total sales for the natural and organic industry increased 56 percent between 2002 and 2006. Natural personal care sales grew by 18.4 percent to $2.78 billion and natural pet product sales increased 15.1 percent to $367 million. Other organic categories showing strong growth were coffee and tea at 23.3 percent and nutrition bars at 22 percent. Food sales in natural product stores were up 11.7 percent, with the hottest sales categories being fresh meat and seafood, as well as beer and wine. Produce remains the largest category with sales of $3.3 billion, up 11.5 percent over 2005.
The retail channel accounted for 81.2 percent, or $46.06 billion, of total sales. For the second consecutive year, natural products retailers drove double-digit growth-this year at a 10.7 percent rate. Natural products retailers accounted for close to 50 percent of total market revenues with sales of $28.27 billion.
The Market Overview is produced jointly by The Natural Foods Merchandiser and its sister publication, Nutrition Business Journal, a leading source of market research and strategic business information for manufacturers and suppliers in the nutrition industry.
Data is gathered through The Natural Foods Merchandiser's Annual Store Survey of more than 780 stores or chains, from the largest national "supernatural" chains to small independent vitamin and health food stores. Mass market and consumer data is compiled from sources including The Hartman Group, Natural Marketing Institute, SPINS/ACNielsen, Multi-Sponsor Surveys, Sloan Treads & Solutions, Health Focus, Information Resources Inc. and Whole Foods Magazine.
For purposes of the survey, natural foods are considered those formulated without artificial preservatives, flavors, colors, fats, sweeteners and GMOs (genetically modified organisms). "Organic" is a labeling term that denotes products produced under the authority of the Organic Foods Production Act.
About New Hope Natural Media
New Hope Natural Media ( www.newhope.com ), a division of the Penton Media, Inc., is the leading media resource and information provider for the natural, organic and healthy products industry with print, in-person/event, and e-business products and services. Penton Media, Inc. is the largest independent business-to-business media company in the U.S., serving more than six million business professionals every month. The company's market-leading brands are focused on 30 industries and include 113 trade magazines, 145 Web sites, 150 industry trade shows and conferences, and more than 500 information data products. Headquartered in New York City, the privately held company is owned by MidOcean Partners and U.S. Equity Partners II, an investment fund sponsored by Wasserstein & Co., LP, and its coinvestors. For additional information on the company and its businesses, visit- http://www.penton.com
